Marketing Segmentation and Targeting Essay Example | Topics and Well Written Essays - 1500 words

Marketing Segmentation and Targeting - Essay Example This research will begin with the statement that A market, in contemporary terms, is defined as a place where both buyers and sellers come to meet with the objective of exchanging of goods or even services. In this text, the general definition of a market is a group of both people as well as businesses with a clear interest, purchasing ability and willingness to spend some money to get the goods or services to satisfy their specific needs. Market segmentation is the grouping of customers who may be individual or corporate into a pool of customers with similar demands (goods and services) in terms of prices and designs. It can also be termed as a marketing strategy where a large market is divided into various subsets according to the customers’ demands. A good market segment should be homogenous meaning all customers in a specific segment would prefer a common product quality. on the other hand, buyers from different segments are expected to have different products and services tastes. However, all these should yield many returns.   The term can also be described as grouping customers with similar needs and charged differently from other groups or segments. Statistical analysis is done on some characteristics to come up with a certain market segment. Among the characteristics are the customers’ location, price, income, religion, and gender. Market segmentation is a business strategy upon which other marketing decisions are based.  ... The first is the geographic segmentation which is determined by various regional variables like nations, neighborhoods, climate, and rate of population growth as well as the population density. Demographic segmentations consider age, level of education, income, status of family, occupational factors, and the customers’ gender. Psychographic market grouping is making use of psychological science to know customers well and is based on the attitudes and the general customers’ lifestyle as well as values. Finally, behavioral market differentiations is done according to the rates at which the customers use the goods or services in question, price sensitivity, how loyal the customer is to a certain brand, as well as the benefits attained. The greatest purpose of market segmentation is to enable sales activities to put more emphasis on a certain market segment with the highest chances to buy the products or services. If properly done, higher sales will be realized. In other pe rspectives, it is aimed to improve business or company’s competitive nature as well as serve the customers in a better way which translates to better output such as sales increase, better market share, and a good business image. Other benefits of this market strategy is to get to the bottom understanding of the customers’ needs and this translates to improvement of a company or business in general. This confers on the business a competitive advantage due to the better services offered to the grouped customers. The other advantages are that the goods or services termed as responsive could be designed to satisfy the wants of a certain market place. Secondly, it can be used to decide on effective costs and creating awareness on a certain